We use a car for 50-50 split business and personal use. What is the best way to enter this. For example 50% would be vehicle insurance and the other could be set to the directors loan account, but can’t see how to do this.
Regards
Laurie
Are you not claiming mileage instead of treating it as company car?
No. This is the way our previous accountant told us to do it. We are trying to enter our previous years accounts into quickfile, one to get used to it and secondly so that we can use your annual return service.
So we have an insurance monthly payment for £24.39 paid for from the business account on DD.
£12 odd of this would be assigned to motor insurance, but what do we do with the other £12 to show it was for personal use effectively. We have other transactions like this that were treated the same. Things like tyres and repairs, also proportion of rent for home office, calculated on number of rooms etc…
Thanks for your help.
Regards
Laurie
You were not advised properly by your accountant.
Yes we are realising that now, and the reason we are moving to quickfile. How do we solve this for entry purposes ?
Regards
Laurie
You can start logging business mileage 45p per mile for first 10k then 25p per mile and move all car related expenses to your personal account.